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Q: Which best explains why wholesalers can offer lower prices to larger customers?
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What best explains why a large company can undersell small retailers?

Large companies can negotiate better prices with wholesalers.


Why can wholesalers offer low prices to large customers?

Large companies can buy all or most of a wholesaler's stock, reducing the wholesaler's administrative costs.


Why do wholesalers offer lower prices to larger customers?

Large companies can buy all or most of a wholsaler's stock, reducing the wholesaler's administrative costs.<--- apex To buy something wholesale is to buy a large amount of something at a cheaper price. Since wholesale companies buy stuff at cheap prices, they can also sell it cheaply


Where can one purchase roses for wholesale prices?

Roses can be purchased for wholesale prices from a number of wholesalers including; Triangle Nursery, GT Flowers, Flowers4Florists, and Scrutons Flowers.


What best explains why wholesalers can offer lower prices to larger customers?

In a word: profitability. The transaction cost per unit is less for a large order: Compare an order for 100 units vs. 100 orders for 1 unit. You could pack, ship, bill and process payment much more quickly for 1 transaction of 100 units vs. packing, shipping and billing 100 individual units. The advertising expense to generate 100 customers would be greater than the cost of acquiring one large customer. The wholesaler can also avoid the costs associated with retail sales: a store is more expensive to buy/rent than a warehouse. Retail requires more employees, longer hours of operation...higher overheads in general.

Related questions

What best explains why a large company can undersell small retailers?

Large companies can negotiate better prices with wholesalers.


Why can wholesalers offer low prices to large customers?

Large companies can buy all or most of a wholesaler's stock, reducing the wholesaler's administrative costs.


Why do wholesalers offer lower prices to larger customers?

Large companies can buy all or most of a wholsaler's stock, reducing the wholesaler's administrative costs.<--- apex To buy something wholesale is to buy a large amount of something at a cheaper price. Since wholesale companies buy stuff at cheap prices, they can also sell it cheaply


What best explains why online retail companies have an advantage over regular stores?

They have a larger number of potential customers because people anywhere can buy from them. 1. They can reach larger numbers of customers without geographic restraints. 2. They may not have to pay sales tax. 3. They aren't limited to store size in the number of products they can sell 4. They may not even have to hold inventory, if their supplyers will drop-ship to customers directly 5. They can change prices in seconds. Or evin on a customer-specific basis.


How to order shoes for wholesale prices?

It is recommended to use FashionTIY. Factory direct prices and fashionable styles are the reasons why many wholesalers choose it.


Which best explains one of the benefits provided by economies of scale?

A larger customer base enables retailers to pay lower prices for wholesale goods. APEX


Which of the following best explains one of the benefits provided by economic of scale?

A larger customer base enables retailers to pay lower prices for wholesale goods.


Where can a company buy industrial ceiling fans in bulk for a reasonable price?

The best place to industrial ceiling fans in bulk at reasonable prices are wholesalers, they can get them at good prices, and then they transfer those prices to you.


Where can one purchase roses for wholesale prices?

Roses can be purchased for wholesale prices from a number of wholesalers including; Triangle Nursery, GT Flowers, Flowers4Florists, and Scrutons Flowers.


Where can one find rubber duckies in bulk quantities?

One can find rubber duckies in bulk quantities when shopping and comparing prices among wholesalers. Some of these wholesalers include Aliex express, Oriental trading.


What explains the factor responsible for setting prices in a free market system?

"Supply is relative to demand" explains the factors responsible for setting prices in a free market system.


What is the purpose of charging different groups of customers different prices?

The purpose of charging different customers different prices is to meet their demand elasticities.